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Xiangfan High-tech Industrial Development Zone

Description:
Xiangfan High-tech Industrial Development Zone (Xiangfan HIDZ) rated “BBB” by China Knowledge in a research report on China’s industrial real estate published today. Located in a northern suburb of Xiangfan, the third-largest economy and second-largest city of Hubei, the HIDZ is one of the 54 state-level High-tech industrial development zones in China.

In 2005, it merged with Xiangfan Automobile Industrial Development Zone, a provincial level zone. Xiangfan HIDZ covers an area of 29.4 sq km. It has two sub-parks: a High-tech park and an automobile park. Xiangfan HIDZ is close to Xiangfan Railway Station and Xiangfan Airport. There are four expressways and two national routes running through the zone.

In 2010, the industrial output of Xiangfan HIDZ was RMB 100.5 billion, up 53.5% year on year. The main driving forces behind the development of Xiangfan HIDZ are the High-tech and automobile industries. The sedan output of the zone reached 95,000 in 2009, generating about RMB 18 billion in industrial output. Going forward, Xiangfan HIDZ will be paying more attention to auto parts, optical-mechanical-electronic integration, new materials and astronautics and aeronautics.

At present, there are over 370 industrial companies and 165 High-tech enterprises in Xiangfan HIDZ, including four companies funded by Fortune 500 enterprises and four domestically-listed companies. The zone has attracted investment from more than 20 countries or regions, including the U.S., Japan, France, Germany, South Korea, South Africa, Hong Kong and Taiwan. Xiangfan High-tech Zone has become an important area for economic growth in Xiangfan and a hot place for investment in northwestern Hubei.

Xiangfan HIDZ is one of the key production bases for auto parts in China, especially for Dongfeng. Aeolus Xiangfan Dongfeng Automotive is one of its major investors. It was established in 2002 with a registered capital of RMB 826 million. A joint venture company of Nissan and Dongfeng Automotive, the company’s main products are the Teana and the Aeolus Bluebird.

Industrial parks rated BBB are considered attractive at an average level. They have less-than-adequate investment conditions and may have some flaws. They may be promising industrial parks but there are uncertainties regarding future development. Most of these are industry specific theme park that caters to fewer industries. There are 60 such BBB rating out of 254 national or municipal-level industrial parks where many are seeking to transform or upgrade its facilities to attract new economy industries.
Companies Mentioned
Aeolus Xiangfan Dongfeng Automotive
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